Monday, June 18, 2007

May NPD numbers

Well, Nintendo has done it again! Check out the May NPD numbers! They also have four of the five top selling titles, wewt!

GameStop also experienced an increase in sales this summer, probably thanks to Nintendo's sales and the EB/GameStop merge.

Another big winner appears to be GameStop Corp. (GME) , one of the few independent video game retailers in the sector.

Underscoring this point, shares of GameStop jumped more than 5% in morning trading Friday to hit $39.28 -- setting a new all-time high for the stock on a split-adjusted basis. The shares have nearly doubled since last summer.

"We believe the multiple is warranted given GameStop's dominant position as a specialty retailer of video games, its substantial infrastructure to trade used titles [providing a unique point of differentiation with customers relative to other retailers] and potential for margin expansion as new software sales increase as a percentage of the product mix," David Magee of SunTrust Robinson Humphrey wrote in a note to clients Thursday, before the NPD numbers came out.